




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 19, No. 1 (2025), pp. 189-203 

 

189 

 

IMPLEMENTING SUSTAINABLE STRATEGIES: A CASE STUDY 

ANALYSIS OF THE SLOVENIAN BUSINESS ENVIRONMENT 

 

N. LAZAR 

 

Nuša Lazar 

Dekorina d.o.o. / B2 Ljubljana School of Business, Slovenia 

https://orcid.org/0000-0002-5898-4968 E-mail: nusa.lazar@dekorina.si 

 

Abstract: A sustainable business strategy integrates economic, environmental, and 

social considerations into core operations, aiming for long-term value creation for both the 

organization and its stakeholders, while ensuring resource conservation. This paper examines 

the implementation of sustainable business strategies and compliance with European 

Sustainability Reporting Standards (ESRS) within the Slovenian business environment. It 

analyzes their content and strategic importance, particularly concerning evolving EU 

regulations. Employing a methodology that combines a review of relevant literature, analysis 

of the ESRS, and case study analysis of the Slovenian business environment the research 

investigates the current state of sustainability practices in Slovenia. The study examines a 

public initiative to boost Slovenian enterprises' international competitiveness via sustainable 

business transformation. Case studies showcase best practices in sustainable strategy 

implementation, emphasizing their critical role in maintaining competitiveness. Supported by 

national programs like SPIRIT Slovenia and the GZS Sustainability Chains, Slovenian 

companies are increasingly adopting these practices, reflecting global trends and leveraging 

local opportunities. 

Keywords: sustainable business strategy, ESRS, sustainability practices, Slovenian companies. 

 

1 INTRODUCTION  

Sustainability means meeting present needs without jeopardizing those of future 

generations. It's about balancing economic growth, environmental responsibility, and social 

well-being. Beyond ethical considerations, sustainability drives value by fostering efficiency, 

attracting new customers, and creating competitive advantage (etoso, 2025). 

The European Union (EU) is prioritizing the shift to a circular economy and 

sustainability, as demonstrated by the European Green Deal and the 2020 New Circular 

Economy Action Plan. This focus on circularity is now integrated into EU policies and funding 

mechanisms for 2021-2027, including cohesion policies, pre-accession policies, and the 

Connecting Europe Facility. The core principle of a circular economy is to replace the 

traditional linear model of production, consumption, and disposal with a system that maximizes 

product lifespan and minimizes waste of materials and energy. The shift to circular economy 

means a shift towards sustainability (Jaspers, 2022, pp. 5-6).  

Consequently, the principles of the circular economy and sustainable development, 

originating from the EU's decision-making level and subsequently influencing national, 

https://orcid.org/0000-0002-5898-4968
mailto:nusa.lazar@dekorina.si


IMPLEMENTING SUSTAINABLE STRATEGIES: A CASE STUDY ANALYSIS OF THE 

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regional, and municipal policies, are now inexorably permeating business systems, compelling 

them to operate within and adhere to these evolving frameworks. 

A sustainable business strategy integrates economic, environmental, and social 

considerations into core operations, aiming for long-term value creation for both the 

organization and its stakeholders, while ensuring resource conservation (PeopleThriver, 2025). 

Sustainable strategy development relies on both enabling contextual factors and 

motivating drivers. These create opportunities for success and incentivize businesses to adopt 

new sustainable approaches (Long, 2019). The global capitalist system and its markets generate 

sustainability issues like inequality, exploitation, and environmental problems. However, they 

also offer opportunities for sustainable strategies: for example, industrialization causes 

environmental damage and inefficient production leads to waste. The undervaluation and finite 

nature of natural resources also present opportunities for sustainable strategies through more 

accurate pricing, new products, and sustainable resource management. Local community 

control can promote sustainable use and local benefits. Finally, the lack of perfect information 

in markets leads to uninformed consumer choices, creating opportunities for sustainable 

strategies that address this knowledge gap (Long, 2019).   

By establishing a prioritized framework, a sustainability strategy guides investment and 

performance, while simultaneously engaging internal and external stakeholders in corporate 

responsibility efforts (Hardyment, 2015, pp. 2). 

 

1. 1 Different Approaches to Defining Sustainable Business Strategies 

Sustainable business strategies aim for positive environmental and/or social impact 

alongside shareholder benefits, with leaders increasingly recognizing their role in addressing 

global challenges and driving firm success. The triple bottom line framework measures success 

beyond profit, considering a company's impact on people and the planet (Harvard Business 

School Online, 2020). This "three P's" (see Table 1) approach encourages businesses to 

integrate sustainable practices to benefit society and environment while remaining profitable. 

 

Table 1. Three P’s of the Triple Bottom Line 

Profit The financial return an organization generates for shareholders. 

People An organization's commitment to positively impacting society. 

Planet An organization's effect on the environment. 

Source: Harvard Business School Online, 2020. 

 

The triple bottom line framework does not position societal and environmental impact 

as trade-offs against financial profitability. Rather, numerous organizations have demonstrated 

that a commitment to sustainable business practices can yield tangible financial benefits. 

Sustainable business strategies not only allow companies to tap into the growing market for 

sustainable goods but also enhance investor appeal. While the triple bottom line is used 

internally, Environmental, Social, and Governance (ESG) metrics provide external validation 

and public accountability for a company's commitment to sustainable practices alongside 

financial profitability 



Nuša LAZAR 

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Many companies dilute their sustainability efforts by tackling too many issues 

simultaneously, resulting in a lack of focus and minimal impact. That is why (Jay et. al, 2025) 

introduced the framework of four lenses. The framework empowers leaders to refine their 

sustainability strategies through four critical lenses: business value, stakeholder influence, 

scientific data, and organizational purpose (as presented in Table 2). 

 

Table 2. The Four Lenses Framework 

Lens Key Questions Tools 

Purpose 

(What do we stand for?) 

 What is our purpose, or put another way, why do 

we exist? 

 What are the values that drive the way we do 

business? 

 - What is our vision: What is the future we want for 

our company, industry, and world? 

 Facilitated dialogues 

across the organization 

 Customer value 

proposition 

 Mining organizational 

history 

Stakeholder Influence 

(What are people trying to 

tell us?) 

 What do internal stakeholders—employees and 

close venture partners, for instance—care about? 

 What do immediate external stakeholders—current 

and prospective customers, creditors, investors, 

suppliers, and regulators—care about? 

 What do other stakeholders—media, NGOs, future 

talent, thought leaders, industry associations, and 

even policymakers—care about? 

 How do we gather their input, and how could we do 

it more proactively? 

 Customer and employee 

roundtables 

 Surveys that include 

ranking or point 

allocation 

 AI sentiment analysis 

Science and Technology 

(What does the data tell us 

about our impact and 

future?) 

 Are there planetary boundaries (and ecological 

thresholds) that our firm is contributing to 

crossing? 

 Are there net-positive impacts that our firm is 

creating? 

 Are there social needs that are significant in the 

societies that are critical to our firm? 

 How will planetary changes affect our business? 

 What emerging technologies could create 

opportunities or threats to our impacts and 

profitability? 

 Life-cycle analysis 

 Living-wage analyses 

 Climate physical-risk 

analysis 

 Technology and reserve 

modeling 

Business Value 

(What affects our bottom 

line?) 

 How do regulations, fees, waste disposal, turnover, 

and reputation affect our costs? 

 When and where are customers willing to pay a 

premium for better business? 

 What risks do we face for inaction or increased 

cost? 

 Cost/benefit analysis 

 Risk analysis 

 Investor research 

Source: Jay et. al, 2025. 

 

By analysing issues through these interconnected perspectives (through these Lenses 

Framework), leaders can identify strategic priorities that align with both internal goals and 

external pressures, ultimately driving impactful sustainability outcomes (Jay et. al, 2025). 

Corporate Citizenship together with Richard Hardyment (Hardyment, 2015, pp. 4-13) 

prepared a guide that simplifies sustainability strategy development by providing clear steps 

for creation or revision. It highlights opportunities and risks, and addresses key aspects like 

buy-in, target setting, and implementation. These steps are presented and explained in Scheme 

1. 



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Scheme 1. Corporate Citizenship's Steps in Developing a Sustainability Strategy 

Step 1: 

Vision, Mission, Values  
Definition Relevance to sustainability strategy 

Vision 

The desired end-goal; a picture of the 

future world that the organization 

wants to create. 

Inspirational and business-relevant 

language to tie the strategy back to 

what the company is trying to achieve. 

Mission 

How the organization plans to deliver 

its vision – what it does, who it does 

it for, and sometimes how. 

The mission of the company is a 

critical starting point for strategy as it 

explains what the business is setting 

out to do. 

Whilst financial viability is still 

fundamental to success, many more 

companies are articulating a purpose 

beyond profit. 

Values 

The guiding principles by which the 

organization lives and judges its 

behaviors. 

Values should be reflected in the 

sustainability strategy. The strategy 

should provide some tangible means 

by which to bring the values to life. 

 

 

Step 2 

Identifying the 

issues that matter 

Materiality means identifying 

and understanding what 

issues are significant to the 

business, and its stakeholders, 

and prioritizing them for 

action. No business can 

address all the issues that all 

stakeholders are interested in. 

A rigorous process of 

identifying issues for 

inclusion in the strategy is 

therefore an essential starting 

point. A standard materiality 

matrix is illustrated to show 

how the issues are typically 

mapped. 

 

 

 

Step 3 

Prioritizing effectively 

Simply identifying the most important issues is not enough for a strategy. A good 

strategy involves deciding which issues to really focus on, and uniting the elements 

into a framework for setting targets. 

 

 



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Step 4 

Targets and KPIs 

Target / Goal:  

What you are trying to achieve 

 

Key characteristics of good targets: 

 Meaningful – targets should set out 

measurable improvements in 

performance (the change in a KPI) 

over a specified time period (e.g. we 

will reduce carbon emissions by x% 

over the next z years). 

 Material – targets should be clearly 

linked to the key strategic goals and 

impact areas of the business.  

 Complete – targets should cover the 

most important social, environmental 

and economic impacts of the business. 

 Consistent – targets should remain 

relatively consistent over time, so 

internal and external stakeholders can 

assess how performance is changing 

year-on-year. 

 Ambitious – companies should set 

targets that move beyond business as 

usual. 

Key Performance Indicator (KPI): 

Quantifiable measure used to monitor 

and evaluate performance towards a 

target/goal 

 

Key characteristics of good KPIs: 

 Accessible – performance measures 

should be easily understood and 

interpreted by all stakeholders. 

 Relevant – measures should make sense 

for business managers. They should tie 

into existing data collection systems 

and reflect other business performance 

measures. 

 Responsive – KPIs should reflect the 

major concerns of key stakeholders that 

are considered to be relevant by the 

business. 

 Comparable – KPIs should reflect 

measures that are recognized and 

significant to the industry in which a 

company operates. 

 

 

 

 

Step 5 

Implementation 

A sustainability strategy is only as successful as its delivery. It is too easy to 

overlook the implementation stage when designing a strategy. But putting plans 

in place to deliver on the programs and targets before the strategy is launched can 

help to maximize performance in the years ahead. 

Source: Hardyment, 2015. 

 

Developing a sustainability strategy allows businesses to assess progress, reassess risks 

and opportunities, and create a unique framework for focused, authentic action that 

differentiates them. This framework also streamlines reporting and communication and 

fostering meaningful stakeholder dialogue. Effective sustainability strategies can drive 

innovation for growth, establish market leadership and competitive advantage, enhance risk 

resilience, strengthen reputation and brand, yield cost savings, and motivate employees 

(Hardyment, 2015, pp. 13). 

 

1. 2 European Sustainability Reporting Standards 

Under EU law, larger companies must publicly disclose how social and environmental 

issues affect their business (risks and opportunities), and how their operations impact people 

and the environment. This transparency, part of the European Green Deal, helps investors, 

NGOs, consumers, and other stakeholders assess a company's sustainability performance 

(European Commission, Finance, 2025). 



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Starting in January 2024, the European Sustainability Reporting Standards (ESRS), 

mandated by the Corporate Sustainability Reporting Directive (CSRD), are transforming 

sustainability reporting in Europe. The first companies have applied these new rules to their 

2024 financial year, with reports published in 2025. These 12 standards aim to standardize and 

improve the transparency of environmental, social, and governance (ESG) reporting, bringing 

it to the level of financial reporting. This initiative requires in-scope companies to disclose their 

ESG impacts, risks, and opportunities, driving greater accountability and a more sustainable 

marketplace (PlanA, n.d., b).  

Reporting under the CSRD follows the European Sustainability Reporting Standards 

(ESRS). These standards are drafted by EFRAG (formerly the European Financial Reporting 

Advisory Group), an independent multi-stakeholder body (European Commission, Finance, 

2025). 

The CSRD significantly expands sustainability reporting requirements compared to the 

Non-Financial Reporting Directive (NFRD), which previously only applied to companies with 

more than 500 employees. Currently, the CSRD mandates reporting for all large companies 

exceeding at least two of these thresholds: 250 employees, €50 million turnover, or €25 million 

in total assets. Additionally, all listed companies (except micro-enterprises) are now required 

to report. This will encompass around 50,000 EU companies, accounting for 75% of the EU's 

total turnover. In the future, the CSRD will also apply to non-EU companies with substantial 

EU operations (€150 million+ net turnover within the EU) (PlanA, n.d., a).  

The CSRD expands sustainability reporting obligations to more companies and 

demands a higher level of detail than the NFRD. Beyond previous requirements, companies 

must now provide in-depth reports on segments described in Table 3. 

 

Table 3. Corporate Sustainability Reporting Directive – Reporting Topics 

Reporting topic  Description 

Environmental protection 

measures 

Businesses must disclose specific initiatives to reduce their environmental 

footprint, including resource conservation and pollution prevention strategies. 

Social responsibility and 

treatment of employees 

This includes everything from employee health and safety protocols to 

employee benefits and company culture. 

Respect for human rights 
Companies must discuss their policies on human rights and how they ensure 

these rights are not violated within their operations. 

Anti-corruption and bribery 

measures 

Businesses must explain their strategies to prevent corruption and bribery, 

including corporate governance measures and ethics training programs. 

Diversity on company boards 

The CSRD requires companies to provide a detailed breakdown of the diversity 

of their board members, focusing on aspects such as gender, age, and 

nationality. 

Source: PlanA, n.d., a. 

 

These standards comprehensively address environmental, social, and governance 

issues, such as climate change, biodiversity, and human rights. Designed to inform investors 

about companies' sustainability impact, they also ensure high interoperability with global 

standards (International Sustainability Standards Board - ISSB, Global Reporting Initiative - 

GRI) to minimize redundant reporting for businesses. The International Sustainability 



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Standards Board (ISSB) and the European Commission services, together with EFRAG 

(organization, that serves the European public interest in financial and sustainability reporting), 

have worked together during the development of the European Sustainability Reporting 

Standards (ESRS) and the IFRS Sustainability Disclosure Standards (ISSB Standards) to 

achieve a high degree of alignment of the respective standards, with a specific focus on 

climate‑related reporting (EFRAG & IFRS, n.d., pp 2-3). 

 

2 METHODOLOGIES 

The initial chapters provided background on sustainability and sustainable business 

strategies through desk research. Subsequent chapters employed a combination of scientific 

methods, including abstraction, concretization, generalization, specialization, qualitative 

research (observations, case study), analysis, and synthesis, to determine relevant knowledge 

and its application to the Slovenian business environment. The research specifically 

investigated companies' approaches to developing sustainability strategies, the tools they use, 

and the resulting business advantages, particularly concerning the complexities of 

sustainability practices and their impact on competitive advantage. 

The organizations for the analysis were selected based on the following criteria: 

 Recognition in the field of sustainable development: Organizations publicly recognized 

for their activities and efforts in the field of sustainability were selected. This was determined 

based on data from the agency SPIRIT Slovenija (Slovenian Agency for the Promotion of 

Entrepreneurship, Innovation, Development, Investment and Tourism) and the results of 

online searches (review of company websites, sustainability reports, media publications, etc.). 

 Diversity of industries: Organizations from various economic sectors in Slovenia were 

intentionally selected to gain a broader insight into the diversity of approaches to sustainable 

strategies. 

 Availability of public information: Organizations with sufficient publicly available 

information regarding their sustainable strategies and practices were prioritized for the 

analysis. 

 Online search results: Targeted online searches using keywords related to sustainability 

and the names of the selected organizations were conducted to gather relevant information 

about their strategies, sustainability reports, projects, and achievements. 

The analysis of the collected data was conducted using the content analysis method, 

through which key themes, patterns, and best practices in the field of sustainable strategy 

implementation in the Slovenian business environment were identified. 

 

3 A CASE STUDY ANALYSIS OF THE SLOVENIAN BUSINESS ENVIRONMENT 

Slovenia, as a member state of the European Union, actively aligns its national 

sustainable development strategies and policies with the overarching EU Green Deal and 

related directives. The Slovenian government translates these EU guidelines into national 

frameworks, often prioritizing areas such as the transition to a low-carbon circular economy, 

biodiversity conservation, and resource efficiency, as outlined in national development plans 

and legislative acts. For example, The Slovenian Development Strategy 2030, also includes 

sustainable development goals in order to implement the global development plan set out in 



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the UN’s 2030 Sustainable Development Agenda (2030 Agenda) (Government Office for 

Development and European Cohesion Policy, 2017). These national strategies then inform 

regional development priorities, which are frequently supported by various EU funding 

mechanisms, including the European Regional Development Fund, the Cohesion Fund, and 

specific programs dedicated to green transition and innovation. This financial support enables 

regions to implement projects aligned with EU and national sustainability goals, such as 

developing green infrastructure, promoting sustainable mobility, and supporting the adoption 

of circular economy practices at the local level. Lazar (2024) highlighted the progress in 

understanding and funding sustainable development and the circular economy through 

different EU funds and schemes. EU funding opportunities offer municipalities and regions a 

way to partially finance their green transitions. Consequently, Slovenian companies operating 

within these regions are influenced by these developments through new regulations, incentives 

for sustainable practices, and evolving market demands driven by the broader green transition. 

Furthermore, EU directives like the Corporate Sustainability Reporting Directive (CSRD) 

directly mandate sustainability reporting for a significant number of Slovenian companies, 

pushing them towards greater transparency and integration of sustainable practices into their 

core operations, thereby reflecting the top-down influence of EU policy and funding on the 

Slovenian business environment. 

 

3. 1 Slovenian Business Environment and Sustainability 

The green, sustainable, and circular development of the economy is both a trend and a 

necessity for maintaining long-term international competitiveness. The transition to a low-

carbon circular economy in Slovenia is among its strategic development priorities. Slovenia 

will achieve this goal by promoting innovation, new business models, digital transformation, 

the efficient use of raw materials by closing material and energy flows, and adaptation to 

climate change (GZS, 2022).  

With growing awareness of the environmental, social, and economic impacts of 

business operations, a rising number of Slovenian companies are focusing on sustainable 

practices, and this is how it reflects on Slovenia business environment based on the studies 

done by the portal Električna prihodnost (Električna prihodnost, 2023):  

 Regulatory Framework: In recent years, Slovenia has adopted numerous laws and strategies 

promoting sustainable development. The European Union, of which Slovenia is a member, 

also dictates many guidelines and requirements in the field of sustainability, which 

influence the operations of companies in the country. 

 Green Economic Orientation: Slovenia is recognized for its natural resources and 

biodiversity. Many companies are leveraging this natural heritage by promoting sustainable 

practices, green technologies, and ecological products. 

 Certificates and Labels: Numerous Slovenian companies are obtaining international 

certifications such as ISO 14001 (environmental management) or EMAS (Eco-

Management and Audit Scheme). These certifications help companies establish sustainable 

practices and communicate with stakeholders. 



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 Stakeholder Engagement: Sustainability efforts are reflected not only in internal company 

practices but also in interactions with customers, suppliers, local communities, and other 

stakeholders. 

 Sustainability Reporting: An increasing number of Slovenian companies are publishing 

sustainability reports, where they transparently communicate about their environmental, 

social, and economic impacts. 

 Education and Training: Successful implementation of sustainable practices requires 

continuous education and training of employees. Many companies and organizations in 

Slovenia organize seminars, workshops, and other events focusing on sustainability and 

corporate social responsibility. 

 Partnerships and Collaboration: Slovenia has an active network of organizations, 

associations, and institutions that promote sustainable development. Companies often 

collaborate with them for knowledge exchange, joint projects, and initiatives. 

 Innovations for Sustainability: Many Slovenian companies are investing in research and 

development to find new, more sustainable solutions, whether in the field of production, 

services, or technologies. 

Many Slovenian companies have consciously decided to overhaul their business 

operations and integrate sustainability aspects into every segment of their processes. Naturally, 

companies are approaching this in various ways. The majority have addressed it in only one 

segment, primarily at the development-product level, often driven by customer requirements 

or positioning within global value chains. However, only a smaller proportion of companies 

have adopted a comprehensive or strategic approach (Obrtno podjetniška zbornica Slovenije, 

2021).  

 

3. 2 Sustainable Business Transformation in Slovenian SMEs: An Analysis of a Public 

Support Initiative 

The study we conducted, examines a public call aimed at enhancing the international 

competitiveness and export intensity of Slovenian enterprises through the implementation of 

sustainable business strategic transformation. SPIRIT Slovenija, the public agency, actively 

began introducing comprehensive and strategically oriented sustainable business practices as 

early as the beginning of 2016 with a two-year pilot project titled Establishing Sustainable 

Business Strategies and Business Models in Practice. Nine Slovenian companies, selected 

through a public call, participated in the project, becoming the first to embark on the path of 

strategic sustainable transformation: M Sora, trgovina in proizvodnja d.d., Lumar IG d.o.o., 

Iskraemeco, merjenje in upravljanje energije d.d., Hotel Sava Rogaška d.o.o., Engrotuš podjetje 

za trgovino d.o.o, Anton Blaj d.o.o., Sij d.d., Steklarna Rogaška d.o.o., Talum d.d. (Rejc 

Buhovac, et. al, 2019).  

SPIRIT Slovenija afterwards prepared a handbook Sustainable Business Strategies and 

Sustainable Business Models in Slovenian Practice based on the experiences from the national 

pilot project mentioned above, which was implemented in the years 2016-2017 and in which 

the before-mentioned 9 Slovenian companies have participated in (Rejc Buhovac, et. al, 2019). 

It was also created based on the experiences that the authors of this handbook gained in 

collaboration with leading global corporations in the field of sustainable business, such as Nike, 



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P&G, The Home Depot, Nissan North America, Patagonia, and others. The manual offers: (I) 

precise explanations of concepts, (II) answers to questions, why sustainable business is 

beneficial to business, (III) the central part of the manual provides instructions on how to 

implement sustainable business into strategic and operational processes effectively, (IV) it also 

explains, how companies can benefit from the help of an external expert in implementing the 

process of sustainable corporate transformation. 

Additionally, the indicated handbook advises on steps for Slovenian companies to 

follow for sustainable transformation (Rejc Buhovac, et. al, 2019): 

 Selection of strategic team members, where the key challenges are:  

o identifying the key experts and opinion leaders who are open to the changes 

required by sustainable business practices; 

o engaging participants to willingly cooperate;  

o ensuring the entire team works openly and with commitment, despite potential 

disagreements due to different perspectives;  

o achieving consensus. 

 Identification of sustainable business opportunities, where the key challenges are:  

o including representatives of all key stakeholders in the sample of participants 

(survey respondents, interviewees);  

o many sustainable business opportunities are hidden behind the guise of 

sustainability risks. 

 Analysis of the existing business strategy and business model, where the key challenges 

are:  

o to openly and critically identify gaps or weaknesses in the company; 

o to recognize the interconnectedness of the company's units and their 

interdependence when they influence these gaps and weaknesses. 

 Writing the vision, where the key challenges are: 

o to reach an agreement on what the company should look like in the target year; 

o to include all essential sustainability challenges and their related risks, and to 

anticipate innovative solutions and target states. 

 Developing a sustainable business strategy, where the key challenges are:  

o to select the right priorities;  

o to map out the sustainable business strategy as a logical series of hypotheses about 

cause-and-effect relationships, which also include stakeholder responses. 

 Defining indicators for strategic control and their target values, where the key challenges 

are: 

o to define indicators that can be easily supported by information systems;  

o to anticipate which methods will allow for the efficient collection of new data 

needed to calculate the indicators;  

o to set meaningful target values (considering the variability of the environment and 

the company's capabilities. 



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 Developing a plan of projects and measures that support the implementation of the 

strategy, where the key challenges are: 

o to find the most suitable organizational solution to support sustainable business 

practices; 

o to find the most appropriate way to motivate employees to strive for the realization 

of the sustainable business strategy;  

o to appoint a colleague who can take on the tasks of project management – a 

coordinator of strategic activities and those participating in them. 

 Preparation of a new business model, where the key challenges are: 

o to identify all the areas where the business model has changed;  

o to know how to document and emphasize its sustainable elements. 

 Monitoring the implementation of the sustainable business strategy, where the key 

challenges are: 

o to consistently monitor progress; not to allow operational, day-to-day challenges to 

hinder regular monitoring and strategy review;  

o to insist that all those responsible for strategic activities participate in progress 

reporting. 

 Communicating sustainable and business performance, where the key challenges are: 

o to prepare engaging yet credible content for the sustainability report;  

o to ensure regular, truly frequent communication. 

Insights from practice confirm the weaknesses and strengths that companies face during 

the sustainable transformation of their operations. Building on the exceptional results and 

impacts achieved by the aforementioned pilot project, an additional public call was open for 

Slovenian companies aiming at enhancing the international competitiveness and export 

intensity of Slovenian small and medium-sized enterprises (SMEs) through the implementation 

of sustainable business strategic transformation. The primary objective of the initiative was to 

facilitate the adoption of sustainable practices and the development of new business models 

within these enterprises. This was pursued through two key activities: (I) the engagement of at 

least 60 SMEs in a strategic transformation process, leading to the formulation of sustainable 

business strategies, novel business models, and proposals for implementation projects; and (II) 

the provision of financial support for a minimum of 60 implementation projects demonstrably 

contributing to the realization of the aforementioned sustainable business strategies. This 

intervention, conducted between 2019 and 2021, represents a targeted effort to integrate 

sustainability principles into the core operations of Slovenian SMEs to bolster their global 

market position (SPIRIT Slovenija, 2019).  Key insights of the intervention reveal that 

successful strategic sustainability transformation hinges on mature awareness, and motivated 

leadership capable of addressing identified weaknesses. While awareness of sustainable 

business needs varies, its direct link to financial improvement is often poorly understood. 

Companies tend to under address their weaknesses, which become critical in crises. Tailoring 

the transformation process to each company (considering its specifics) and broadly engaging 

employees are vital for building trust and commitment. Many SMEs lack long-term strategies 

and defined KPIs, hindering monitoring and timely action. Establishing clear, fact-based 

indicators can drive improvement and accountability. Crucially, rapidly detecting changes and 



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risks is increasingly important for proactive action and future success (Obrtno podjetniška 

zbornica Slovenije, 2021). 

 

3. 3 Slovenian Practices and Sustainable strategies 

The Chamber of Commerce and Industry of Slovenia (Gospodarska zbornica Slovenije 

– GZS) introduced the Sustainability Chains (Tranjostne verige), a platform and community 

dedicated to connecting, educating, and empowering Slovenian companies on their journey of 

sustainable transformation. They recognized that sustainability is a path they build together 

with employees, partners, companies, institutions, and individuals – united by the vision of 

creating a fair, responsible, and green future. The experiences and challenges in establishing 

sustainable strategies for individual companies included in this community/platform are listed 

as examples of good practices below (GZS, 2025):  

 Adria Mobil already developed its first sustainability strategy in 2020. In 2021, they 

calculated the company's carbon footprint. In 2023, they updated their sustainability goals, 

and in 2024, they also began sustainability reporting. 

 Iskraemeco has a holistic approach to sustainable development, which is increasingly 

embedded in the company's strategy, values, and culture. They strive for complete 

transparency in their operations and conduct. Since 2024, they have also had a working 

group within the company with a responsible person for sustainable development. 

 Corporate social responsibility, ecological efforts, and the sustainable orientation of the 

company are also part of the business strategy of Unichem. They also invest heavily in the 

education of employees and the wider society through their Gaia magazine. 

 SID Bank promotes the financing of sustainable projects and companies through its SID 

zelen (SID Green) program. Insurance is provided through the EIF guarantee scheme. SID 

Bank is also transitioning to sustainability reporting in accordance with CSRD for its 2025 

reporting. It is also aligning its requirements for companies' ESG data with the disclosure 

requirements of the CSRD directive and ESRS standards. 

A good case example in the field of sustainable operation of companies in Slovenia is 

the Talum Group (Talum, n.d.). The sustainable development of the Talum Group is based on 

increasing the scope and complexity of products and services, improving productivity and 

efficiency, and ensuring the highest quality with an emphasis on environmental protection and 

efficient energy use, health and safety at work, fair treatment of employees, information 

security, risk management, and the code of business conduct within the Talum Group. The 

Talum Group has adopted a Sustainable Development Policy of the Talum Group, which 

covers the aforementioned areas, together with set goals, in accordance with which it also 

operates. The Sustainable Development Policy has been in effect since June 1, 2023, and 

defines the foundations of operation in the areas of quality, working conditions and human 

rights, which include respect for human rights, the right to equal opportunities and treatment 

of employees, the prohibition of child and forced labor, the limitation of working hours, and 

the right to freedom of association and collective bargaining. An effective occupational health 

and safety system, an efficient environmental and energy management system are established, 

where they are particularly committed to mitigating and adapting to climate change, preserving 



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201 

 

biodiversity, and the use and consumption of natural resources and energy. They care for the 

quality of air, soil, and groundwater, and in waste management, they follow the waste 

management hierarchy. They are committed to the responsible sourcing of input materials, 

especially critical minerals from conflict zones. They operate in accordance with the adopted 

business code of conduct, effectively manage risks, and with the established information 

security system (TISAX), we protect confidential data and information from unauthorized 

access, use, disclosure, alteration, or destruction. They also prepare a Sustainable Development 

Report of the Talum Group (available online for 2022 and 2023) (Talum, n.d.).  

Another example of the successful implementation of a sustainable business strategy is 

the company Menerga. Menerga is a high-tech engineering company that provides energy-

efficient air conditioning, ventilation, heating, and cooling solutions. At the end of 2021, the 

company presented the Sustainable Strategy 2022 – 2025. The strategy outlined activities 

defined by a broader group of Menerga employees based on the co-creation of a shared 

company vision for 2025. The Sustainable Business Strategic Transformation preparation 

program, which resulted in the Sustainable Strategy document, aimed to establish sustainable 

strategic foundations for business operations and adopt appropriate values that serve as the 

basis for building true, better company value in new business, social, environmental, and 

economic situations (Menerga, 2021). 

 

DISCUSSIONS/CONCLUSSIONS 

To build lasting organizations and thriving communities, leaders must prioritize 

sustainability today. In an era of heightened transparency, a robust sustainability strategy that 

integrates employee well-being and environmental responsibility is not just a future trend, but 

the essential path to enduring prosperity (PeopleThriver, 2025). While businesses have 

historically contributed to environmental problems, they are also uniquely positioned to drive 

positive changes through the adoption of sustainable practices. 

Adopting sustainable business practices offers numerous benefits, driving internal 

innovation by prompting a reassessment of operational inefficiencies and material sourcing, 

potentially leading to cost savings. Investing in renewable resources also improves 

environmental and supply chain risk management. Furthermore, a strong sustainability 

program attracts and retains talent, particularly millennials, and expands audience reach by 

appealing to sustainably minded consumers, ultimately building brand loyalty. Utilizing fewer 

or more sustainable resources directly reduces production costs. Opting for sustainability can 

also generate positive publicity, enhance a company's standing in a competitive market by 

differentiating its brand, and even set industry trends, potentially inspiring broader adoption of 

sustainable practices (Harvard Business School Online, 2021). 

Corporate sustainability in Slovenian companies reflects global trends while also 

capitalizing on local opportunities and specificities. With the increasing need for sustainable 

business operations and the commitment to the Sustainable Development Goals, this trend is 

expected to continue to grow in Slovenia. 

As presented herein, a significant number of Slovenian companies have already 

embarked on their journey towards sustainable business practices and the development of 

sustainable business strategies. To further facilitate this transition, companies can leverage 



IMPLEMENTING SUSTAINABLE STRATEGIES: A CASE STUDY ANALYSIS OF THE 

SLOVENIAN BUSINESS ENVIRONMENT 

 

202 

 

insights from the outcomes of past SPIRIT Slovenija calls for proposals (presented in this 

paper), utilize available resources such as the aforementioned handbook “Establishing 

Sustainable Business Strategies and Business Models in Practice”, and engage with initiatives 

like the GZS Sustainability Chains program, which is empowering Slovenian companies on 

their journey of sustainable transformation. 

Also financing SME projects and investments for reducing environmental impact is 

important. Two most used financing possibilities for Slovenian companies are (Obrtno 

podjetniška zbornica Slovenije, 2021): 

 SID Bank provides financing in the areas of renewable energy sources, efficient energy use, 

clean transport, pollution prevention and control, and the circular economy, etc. 

 The Eco Fund offers non-refundable grants and favorable loans to companies planning 

environmentally friendly investments in areas such as heating and ventilation, insulation 

and windows, efficient energy use, electricity self-sufficiency, construction or 

comprehensive renovation of buildings, vehicles and sustainable mobility infrastructure, 

water, air pollution reduction, waste management and asbestos removal, and initial 

investments in environmental technologies. 

Reconciling economic profit with social and environmental value creation is central to 

sustainability, requiring a delicate balance often explored in strategy literature through 'win-

win' scenarios. While legitimizing sustainability, this focus can limit action by overlooking 

opportunities where significant social or environmental gains necessitate minor economic 

trade-offs. Consequently, potentially impactful initiatives with slight economic costs may be 

deemed illegitimate, hindering substantial societal and environmental improvements (Long, 

2019). 

Looking ahead, integrating sustainable business strategies is a fundamental imperative 

for long-term viability and competitive advantage. Future success depends on organizations 

proactively embedding environmental, social, and governance factors into their core 

operations, recognizing the interconnectedness of planetary health, societal well-being, and 

economic prosperity. This requires systemic transformations, fostering innovation in circular 

economy models, resource efficiency, and equitable value creation, driven by increasing 

stakeholder demands and the urgency of global challenges. 

 

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